This story is from February 17, 2019

Rs 100 crore multi-state cryptocurrency racket busted in Mumbai, 4 accused nabbed

Rs 100 crore multi-state cryptocurrency racket busted in Mumbai, 4 accused nabbed
Picture for representational purpose only
MUMBAI: The city crime branch has busted a gang allegedly involved in a cryptocurrency racket that amassed an estimated Rs 100 crore by cheating several people in Mumbai, Surat, Gujarat and Uttar Pradesh. Four have been arrested in the case so far.
The gang launched a cyrptocurrency a year ago and called it Cashcoin, similar to Bitcoin. Police said their intention was to cheat investors by promising to double their investments.

Across the world, there have been heightened concerns over cryptocurrency, also known as virtual currency, as these are not regulated by any government or central banks, leading to money-laundering fears. The RBI has discouraged investment in virtual currency too.
Crime branch (unit XII) has registered an offence of cheating, breach of trust, criminal conspiracy under the Indian Penal Code and sections the Information Technology Act. Sources said the police are likely to invoke provisions of the Maharashtra Protection of Interest of Depositors Act and the Chit Funds Act as well.
The accused—Sanjay Sontakke (44), Rajnikant Kumavat (46), Alpesh Barodia (32) and Kirankumar Panchsara (38)—were arrested from Mumbai, Surat and Uttar Pradesh. Police said they are looking for another accused, Ashok Goyal, from Surat, who has reportedly played a key role in the scam.
The complaint was lodged by Umeshchand Jain, a resident of Surat, who alleged that the accused duped him of Rs 1.2 crore.
“The accused held meetings in Mumbai, Surat and other parts of Gujarat, and lured people into investing their hard-earned money by promising to double it in two months. Initially, the gang repaid a few investors to lure more people in and then defaulted. Their intention was to cheat,” said inspector Sunil Jadhav.

During investigations, police reportedly learnt that the accused had siphoned off the complainant’s money by transferring the amount from his bank’s Surat branch to a bank account in Uttar Pradesh. Police have been freezing several accounts in different parts of the country.
Ajay Dubey, advocate for the accused, said, “My clients are innocent and have been wrongly arrested. Indian Penal Code sections 419, 420, 406 and 409 are not applicable in this case as no one has been cheated, since all transactions are in cheque payment.”
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About the Author
Ahmed Ali

S Ahmed Ali, Senior Assistant Editor at The Times of India, Mumbai, covers crime and related isues but sometimes he also takes up offbeat subjects. His interests: automobiles particularly bikes, and gymming.

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